How to Become an Entrepreneur: 7 Steps You Need to Take on the Path to Entrepreneurship

For so many of us, becoming our own knob is the ultimate dream. We crave the creative control, flexible hours, and freedom that come with being an entrepreneur .
But there ’ s a batch of shape involved behind the scenes, and much of becoming an entrepreneur is about planning, strategy, and dedicate execution. If you ’ ve always wanted to get into the game but haven ’ metric ton been sure how, we ’ ve created this resource as a leap off point .

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Should you become an entrepreneur?

Getting into business for yourself can be fun and exciting. It can besides be daunting and difficult. First, ask yourself if you ’ rhenium willing to start a business for the long term. Though the candidate of being an entrepreneur might feel exhilarating at first, growing a occupation takes meter. Are you ready to commit to this for the next respective years ?
New businesses have a high failure rate. Aspiring entrepreneurs have to cast aside the safety of a stable paycheck and day job and take the highs and lows in stride. It may take some time for your business to be profitable. That said, entrepreneurship is rewarding—just know what you ’ re getting into .
motivations for starting a business
Shopify research shows that many entrepreneurs mention independence and tractability as the major reasons why they started their business .
Entrepreneurs report earning a good live, despite the difficulty in predicting earnings for entrepreneurs. indeed calculates the average wage for US entrepreneurs is $ 60,617. Yet if you live in San Francisco or Columbus, Ohio, that number is over $ 100,000. Your wage depends on many factors, including localization, industry, scalability, and more .
What ’ sulfur crucial is that you control your wage as an entrepreneur. You can earn as much or ampere little as you want. You can grow fast or slow, or decide not to grow at all .
Entrepreneurship has advantages that, for many people, outweigh the negatives. Small clientele owners on Shopify tell us there are aspects of running their own business that they ‘d find hard to get elsewhere. particularly, being independent and controlling their own fourth dimension .

How to become a successful entrepreneur

We ’ ll walk of life you through the seven necessity steps you need to take to become an entrepreneur, figuring out such things as what you ’ ll betray and how you ’ ll make inventory .

1. Find a profitable business idea

The product category you choose is at the core of your on-line business and will be one of the most significant decisions you ’ ll make .
Although the “ perfective ” merchandise may not exist, there are decidedly ways to minimize risk by choosing a product and recess that have more working for it than against it. Use the criteria below as a guidepost that can help you better understand the pros and cons of the product you ’ re considering—and hopefully increase your overall chances of success .

Does your product serve a passion or solve a problem?

It ’ second always an advantage to sell products that serve a passion or solve a problem. An extra profit is that when you sell products that satisfy one of these requirements, your marketing costs tend to be lower since newfangled customers are actively seeking out a solution as opposed to you having to heavily market your product to find them .
It ‘s constantly an advantage to sell products that serve a heat or solve a trouble .

Is this a trend, fad, or growing product category?

Riding a fad can be dangerous. A tendency can be lucrative. stable markets are safe and growing markets are ideal. Understanding where your product and niche lay can play a huge character in your success or failure .
To better understand the differences, let ’ s expression at the conceptual growth curves and then go through a real world exercise for each character .
product category trends
Fad
A fad is something that grows in popularity for a very abruptly period of prison term and fades out just as promptly. A fad can be lucrative if your entry and exit into the target commercialize are timed absolutely, but this can be difficult to predict and a recipe for disaster—it ’ s better to build your commercial enterprise on a more solid foundation. Remember fidget spinners ? The hand-held spinning toys were all the rage in 2017, peaked in popularity, and then became irrelevant about overnight .
Trend
A swerve is a longer term direction that the market for a product appears to be taking. It does n’t grow angstrom promptly as a fad, it lasts longer, and it generally it doesn ’ t decline about equally promptly .
Trending products can sometimes besides develop into long-run growing markets, although this can be difficult to predict. There have been several trends that have popped up during the pandemic : with the amount of clock we ’ re all spend at home, family items like kitchen towels and memory containers have become increasingly popular .
Stable
A stable market is one that generally is immune to shocks and bumps. It is neither declining nor growing but maintains itself over long periods of time. Tea pots, for exercise, have maintained a stable floor of popularity for the past 15 years .
Growing
A growing market is one that has seen consistent growth and shows signs of a long-run or permanent wave market chemise. The athleisure market has been growing since the conclusion of 2014, but the pandemic apparently added to its growth. nowadays, the market ( and the demand for it ) is sol big that it ’ second not likely to go anywhere anytime soon .

What does the competitive landscape look like?

What does the competitive landscape look like for your selected product and recess ? Are you beginning to market ? Are there already a few competitors or is the market saturated with people selling the like product or targeting the same recess ?
If you ’ re beginning to market, you ’ ll want to do a lot of grocery store inquiry to determine that there is in fact a market matter to in your product. If there are a few competitors already in the space and they seem to be doing relatively well, this could be a good augury that the market has been validated .
If there are many competitors in the market, it ’ mho besides a sign that the market has been validated. however, you ’ ll probably have to determine how you can differentiate your mark and products from the sea of competitors in order to carve out your own topographic point .

Free: The Big List of Business Ideas

To help you find the inspiration to start, we compiled a list of 100+ in-demand business ideas, broken down into categories like fitness, dress, and bet on .

2. Get your product developed

once you decide what you ’ ll sell, there are several options for intersection exploitation. You can make your own products by hired hand, like the artisans at Heath Ceramics. You can find a fabricate partner who will develop your intersection idea to your specifications, like the team at West Path does for their mexican blankets .
There ’ randomness besides the choice to buy your product wholesale, which means you ’ ll purchase pre-developed items from a sweeping market. Our market, Handshake, is a great choice for this .
If you ’ d rather not hold inventory, you can look into dropshipping. Dropshipping is when a customer purchases an item from you and you, in turn, buy that item from a third party. The third base party then ships the token immediately to the customer so you never have to store, handle, or ship any products .
If you create your own designs for t-shirts, art prints, mugs, etc., a like option is to offer printing on demand. Printing on requirement is where you partner with a supplier to print your own designs on white-labeled items that are merely created when a customer purchases them. This way you sell entirely american samoa much inventory as there is requirement for and never have to store or ship the products yourself .

3. Validate your product

The adjacent tone is to validate your product idea. This is the process where you figure out if you ’ re sell products that customers actually want. real product establishment happens when you make your first base few sales. so, before investing besides a lot money or time into your newly product line, it ’ mho helpful to do a few low-cost tests .

You can build a coming soon page to drum up exhilaration. Or set up pre-orders to see if you get any interest. The owners of Jaswant ’ mho Kitchen, a workshop that sells natural amerind spices and cooking kits, validated their products by first sell at in-person shows .
once you make a few sales, you ’ ll be better able to validate necessitate for what you ’ ra deal .

Real product validation happens when you make your first few sales.

4. Write your business plan

With some much-needed product establishment, it ’ mho time to write a commercial enterprise plan. A business design is a document that outlines basically everything about your commercial enterprise. Core ideas it will include are : who you can reach and marketplace to, your clientele model, what you ’ ll charge for each product, the merchandise lines you ’ ll originate with, and your market scheme .
Though it may seem exciting to start with the fun stuff like setting up your social media accounts or creating your logo, a business design ensures that you ’ ll quell on track and that you have a solid, well thought out scheme going ahead. Use our free business plan template to guide you through the process .

Free: Business Plan Template

business planning is much used to secure fund, but batch of business owners find writing a design valuable, even if they never work with an investor. That ’ s why we put together a loose occupation plan template to help you get started .

5. Secure the funding you need

Businesses price money, specially if you plan on selling your own product. While you can reinvest early profits back into your clientele, many businesses need cash flow of some kind. here are a few popular options :

  • Self funding. If you have the means, you can fund your own business. Just make sure that you’ll be able to shoulder the cost for a while. While some businesses become profitable quickly, depending on the business, it can take some a few years to see a return on investment.
  • Take out a business loan. Another option is to take out a small business loan. Shopify Capital is an option for those who qualify, and it’s based on your sales.
  • Get money from venture capitalists. Capital investment comes in the form of an angel investor or venture fund. These accredited investors provide funding for startups and early stage companies. In return for their investment, they receive equity ownership or convertible debt, which is a loan that can be converted into equity in the future.
  • Float your monthly spend with a credit card. If your supplier requires you to pay cash for all of your inventory, you can maximize how far your money goes every month by using a tool like Plastiq. Plastiq lets you pay vendors that don’t accept credit cards by sending them the funds in the form that works best for them (check, automated clearing house, or wire). That allows you an additional 30 days (or 60 days, depending on your credit card) to pay for inventory.

business costs
Shopify research shows that in their beginning year of business, entrepreneurs spent the most amount of money on product costs ( sensitive materials, inventory, supplier, manufacture, patents, etc. ) .
Learn more: How to Write a Compelling Elevator Pitch That Sticks ( Plus 3 Templates You Can Steal )

6. Launch your business

Don ’ deoxythymidine monophosphate overthink things : you ’ ll become an entrepreneur through action and intemperate work. Set up a checklist for launching day. You ’ ll besides want to make certain any plunge day marketing activities, like organic social posts, are set up and ready to go. And you should have a plan for customer digest or at least an easily way for customers to contact you if they need help .
After that, spend all of your time and energy on getting your foremost sales. You can expand your skill efforts late .

7. Become a student of entrepreneurship

You ’ ll learn more about commercial enterprise by launching a business than you will through any business course. But, successful business owners always become students of entrepreneurship .
As Mathilde Collin, CEO and co-founder of Front, wrote :
“ Experienced inauguration leaders liberally plowshare their stories in the hopes of pushing the industry forward.…Advice from early founders, investors and technical school leaders has been invaluable to me in my career so army for the liberation of rwanda. Their stories and learnings have helped me skip over hurdles where they stumbled and guided me through my own obstacles along the way. ”
The more time you dedicate to learning, specially from those who have blazed the trails before you, the more you ’ ll be able to avoid costly mistakes and innovate where others haven ’ t. You might choose to work with a mentor, read books for entrepreneur, take courses, listen to business podcasts, or even subscribe to email newsletters. Choose whatever method works best for you, but barely make indisputable that you never stop learn .
Want to work on your commercialize and ecommerce skills ? Google ’ s Digital Marketing & E-commerce certificate will help you develop and hone skills every entrepreneur should know .

Where to find entrepreneurial support

The worldly concern of entrepreneurship can be tough. But there are resources and groups available to you to get the help, tools, and advice you need .

Resources

Groups

  1. Shopify Entrepreneurs. Shopify Entrepreneurs is a free Facebook group consisting of over 100,000 Shopify store owners, developers, and service providers. You can find discussions about everything from Shopify app recommendations to marketing and sales questions, as well as tips for improving your Shopify store.
  2. Entrepreneur’s Organization. The Entrepreneur’s Organization is a global support network with over 14,000 entrepreneurs and leaders. The EO offers mentorship and networking opportunities perfect for new entrepreneurs.
  3. Vistage. Founded in 1957, Vistage is a mentoring membership program for CEOs and business owners. It has 24,000+ members globally and offers coaching and peer advisory services to entrepreneurs.
  4. Startup Grind. Startup Grind is a global community built to educate, inspire, and connect entrepreneurs. The group hosts many events that bring over 3.5 million entrepreneurs together to connect, learn, teach, build, and belong.
  5. Young Entrepreneur Council. This group offers support from vetted entrepreneurs aimed to help overcome challenges and grow your business. While it has tight restrictions to get into the community, it’s a good place to network and find potential business partners.
  6. International Council for Small Business (ICSB). The ICSB was the first non-profit membership program dedicated to small business growth worldwide. It brings together educators, researchers, and practitioners from around the world to share insights through programs, workshops, training sessions, and more.

Becoming the best business owner you can be

Starting a clientele is not comfortable. Growing it is even harder. You may feel like you ’ re not ready to own a business, but if you ’ ve made it this far, you are. It all starts with an mind, one that you are connected with and passionate about. If you can turn that idea into something that solves real-world problems, you ’ re on your way to becoming a successful entrepreneur .
Illustration by Gracia Lam

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Entrepreneur FAQ

What is an entrepreneur?

An entrepreneur is person who starts and runs a business, taking on fiscal or personal hazard in the action. Entrepreneurs can be little business owners, contentedness creators, inauguration founders, or anyone who has the ambition to build a commercial enterprise and work for themselves .

How do I start to become an entrepreneur?

  • Find a profitable business idea.
  • Develop your product.
  • Validate your product.
  • Write a business plan.
  • Get funding. 
  • Launch your business.
  • Become a student of entrepreneurship.

What are the qualities of an entrepreneur?

  • Passion
  • Grit
  • Ambition
  • Drive to solve problems
  • Desire to bring ideas to life

Do entrepreneurs get paid?

According to data from indeed, the average uranium entrepreneur gets paid $ 60,000 per year. That number varies depending on factors like your industry, products, location, and more. Entrepreneurs can earn a wage or pay themselves through owner ’ s guide, which is when you take funds out of the business for personal consumption .

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